Category: United States

JD Power CEO Finbarr O’Neill Announces Retirement

2017-10-10

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COSTA MESA, Calif.: 11 Oct. 2017 — JD Power, the global leader in consumer data & analytics and advisory services, announced today that Finbarr O’Neill, Chief Executive Officer and President, has informed the company’s board of directors of his intention to retire from JD Power, effective March 2018.

JD Power’s board has commenced a search to identify a successor for Mr. O’Neill. O’Neill, 65, will remain with the company during the transition process as the new CEO assumes the role, and after the transition, Mr. O’Neill will act as a Senior Advisor to the company.

“We are deeply grateful to Fin for his leadership of JD Power.  During his tenure, the firm has expanded globally and increased its sector expertise, while maintaining the firm’s core brand values of independence and integrity,” said Joseph Pacini, Chief Executive Officer of XIO Group.  “Over the last year alone, Fin has directed the firm to record profitability, the company has strategically entered the B2C market while also enhancing its ‘big data’ capabilities for an increasingly digital world.”

In his 10 years with JD Power, Mr. O’Neill led the firm during a period of tremendous expansion.  Additionally, he oversaw the dramatic expansion into data & analytics, the digitization of the platform as well as entrance into the B2C market through the successful acquisition of National Appraisal Guides (NAG).  Previously, he served as CEO of Hyundai Motor America, Mitsubishi North America and Reynolds & Reynolds.

“In an increasingly mobile and connected world, JD Power is poised for even greater growth,” said O’Neill. “This is a good time for me to hand off to the next generation of leadership. None of the success that we have enjoyed would have been possible without the support and leadership of all the great people across JD Power.”

“Fin has positioned the company for a great future through further digitalization, the acquisition of NAG and top appointments including JD Power’s new Chief Digital Officer, Bernardo Rodriguez,  Senior VP of Automotive Doug Betts and Senior VP of Data & Analytics Thomas King.” said Carsten Geyer, Partner and Head of Europe of XIO Group.  “Under Fin’s leadership, JD Power has remained true to its motto as the ‘voice of the consumer’ and the best provider of data driven insights and solutions for companies and consumers across a multitude of industries.”

JD Power was acquired in September 2016 by XIO Group, a London-headquartered private equity firm, and over the past year O’Neill has successfully led the transition from S&P Global (formerly McGraw Hill Financial) to XIO Group ownership.

Executive search firm Egon Zehnder is partnering with the company in the CEO search.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group.

XIO Group is a global alternative investments firm headquartered in London with more than $3.2 billion of committed capital that employs an international team of more than 70 professionals. Representing more than 15 nationalities among its employees and its network of advisors, the firm has operations in the United Kingdom, Germany, Switzerland, Hong Kong and mainland China. With a seasoned international investment team that includes professionals with experience working at many of the world’s leading private equity firms, XIO Group seeks to deploy its capital for global transactions. XIO Group’s strategy is to identify and invest in market-leading businesses located across North America and Europe and help these companies to capitalize on untapped opportunities in fast growing markets, particularly in Asia. XIO Group is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.  For more information, visit: www.xiogroup.com.

Media Relations Contacts

JD Power

Geno Effler; 714-621-6224; [email protected]

XIO Group

Brian Shiver; 212-850-5683; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Vivint Smart Home Ranks Highest in Home Security Customer Satisfaction, JD Power Finds

2017-10-11

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COSTA MESA, Calif.: 18 Oct. 2017 — In the growing professionally installed and monitored home/residential security market, overall customer satisfaction with home security brands is high relative to other at-home studies such as windows and patio doors; home improvement retailers; clothes washers and dryers; and dishwashers, according to the JD Power 2017 Home Security Satisfaction Study,^SM. On a 1,000-point scale, overall customer satisfaction for home security is 831, compared with all other at-home studies at 825.

“There’s a clear connection between a customer’s level of product knowledge and level of satisfaction,” said Greg Truex, Senior Director of the At-Home Practice at JD Power. “Satisfaction is crucial because it leads to more recommendations and increased brand loyalty, which are important in such a big industry.”

The study identifies 11 key performance indicators (KPIs) that have a significant effect on satisfaction (listed in order of importance): features of your security system met your needs; billing statements did not have errors; did not experience problems with your home security system; number of phone contacts needed to answer question/resolve problem; ability to control your system outside the home; two-way talk provided over the control panel; did not experience false alarms; reviewed the instruction manual or online support documents; sales contract terms fair and reasonable; smart/connected home features; and service technician arrived on time.

Following are some key findings of the study:

• Meeting KPIs helps raise satisfaction and advocacy: When six or more of the 11 KPIs are met, satisfaction is 879, with 72% of customers saying they “definitely will” recommend the brand to a friend, relative or colleague. When five or fewer KPIs are met, satisfaction declines to 773 and the percentage drops to 42%.

• Satisfied customers are spreading the word: From a customer advocacy perspective, 89% of delighted home security customers (overall satisfaction scores of 901 and above) say they “definitely will” recommend the brand to others, compared with the study average of 58%. Among delighted customers, the average number of positive recommendations is 3.3, compared with the study average of 2.2.

• Satisfied customers are loyal: Among delighted customers, 61% say they “definitely will not” switch from their home security brand, compared with the study average of 37%.

Study Rankings

Vivint Smart Home (851) ranks highest in customer satisfaction among home security brands. Vivint Smart Homeperforms well in high importance attributes: effectiveness of securing my home; ease of using the system; timeliness of resolving problem, question or request; and clarity of information provided for customer service. Guardian Protection Services (841) ranks second and AT&T (Digital Life) and MONI (839) rank third in a tie.

The 2017 Home Security Satisfaction Study measures customer satisfaction with professionally installed and monitored home/residential security brands by examining four factors (in alphabetical order): billing and payment; customer service; enrollment; and usage.

The study is based on responses from 3,134 customers who own a professionally installed and monitored home/residential security system and was fielded in August-September 2017.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Life Insurance Customer Satisfaction Reaches All-Time High, JD Power Finds

2017-10-13

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COSTA MESA, Calif.: 17 Oct. 2017 — Improved economic conditions, favorable pricing and better customer engagement have driven customer satisfaction with U.S. life insurance plans to a record high, according to the JD Power 2017 U.S. Life Insurance Study,^SM released today.

“U.S. life insurers have been doing a great job of converting increased demand into more engaged, more educated and, ultimately, more satisfied customers,” said Gregory Hoeg, Vice President, Insurance Practice at JD Power. “As improving economic conditions have driven more interest in life insurance plans, the industry leaders have seized on that momentum as an opportunity to help customers better understand their policies and billing statements, which improves their perception of the value they receive for the money they spend on premiums—a critical component of insurance customer satisfaction.”

Following are key findings of the study:

• Record high customer satisfaction: Satisfaction among individual life insurance customers has reached an all-time high of 785 (on a 1,000-point scale), up by a significant 16 index points from 2016.

• Price is a key driver of higher satisfaction: The increase in overall satisfaction among life insurance customers is being driven by improvements in all studied factors, but price emerges as the highest-weighted factor with the largest year-over-year improvement. Price satisfaction has jumped to 764 in 2017 from 747 in 2016.

• Improved engagement among new customers helps drive price satisfaction: Price satisfaction increases the most among newer customers—those who have a tenure with an insurer of less than four years—improving by 35 points in 2017, compared with a 13-point increase among those who have been customers for more than three years. The proportion of newer customers who say they “completely understand” their billing statements has increased by 20 percentage points year over year.

• Discounts matter, but wearables fail to gain traction: Discounts have a significant effect on overall satisfaction and particularly price satisfaction. The specific discounts driving the highest overall satisfaction are multiple policy discounts. The much-hyped use of wearables as a discount tool has failed to gain any significant traction as of this year’s study.

Insurer Rankings

State Farm ranks highest in life insurance customer satisfaction for a fourth consecutive year, with a score of 853. State Farm is the industry leader in providing policy discounts (67% vs. 40% industry average). MetLife ranks second with a score of 812 and Pacific Life ranks third with a score of 808.

The 2017 U.S. Life Insurance Study is based on responses from 6,138 individual life insurance customers. The study was fielded in June-July 2017. 

For more information about the U.S. Life Insurance Study, visit http://www.jdpower.com/resource/us-individual-life-insurance-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Smart Thermostat Companies Continue to Produce High Customer Satisfaction Levels, JD Power Finds

2017-10-18

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COSTA MESA, Calif.: 19 Oct. 2017 — Ease of installation and usage remain key contributors to overall satisfaction with remotely controlled—or smart—thermostats, according to the JD Power 2017 Smart Thermostat Satisfaction Report,^SM released today.

The primary benefit of smart thermostats is convenience, with 70% of customers indicating they adjust their thermostat remotely, followed by automated temperatures when not home at 53% and saving money on monthly heating/air conditioning costs at 52%.

While nearly two-thirds (63%) of customers installed the unit themselves vs. 37% who used a contractor/professional installer, the levels of overall satisfaction vary slightly between installation methods (868 among do-it-yourselfers vs. 862 among those using a contractor, on a 1,000-point scale). Less than one-half (42%) of customers who installed the smart thermostat themselves say it was easier than expected, while only 6% say it was more difficult than expected.

“There’s a clear connection between ease of installation/ease of use and satisfaction levels,” said Jeff Conklin, Vice President of Service Industries at JD Power. “Manufacturers would be wise to focus on the ease of connectivity as consumers’ expectations are continually changing toward ‘make it easy for me.’ Satisfaction is crucial because it leads to more recommendations and increased brand loyalty, which are important for these brands as they expand their offerings into related services.”

Connectivity issues, while minimal, affect overall satisfaction. Among the 12% of customers having difficulty connecting their system to the internet and the 7% of those having difficulty connecting from their mobile app, overall satisfaction is 818 and 776, respectively. Among customers who indicate not experiencing any connectivity problems, overall satisfaction is 888.

The report also finds a high level of customer engagement before making a purchase. Nearly half (45%) of customers looked at consumer review websites and 41% indicate those positive reviews were a reason they selected their smart thermostat.

Following are key findings of the study:

• Satisfied customers get the word out: More than 9 in 10 (92%) delighted smart thermostat customers (overall satisfaction scores above 900) say they “definitely will” recommend the brand to others, compared with the report average of 77%.
• Satisfied customers keep purchasing: More than half (51%) of delighted customers say they “definitely will” purchase other products/devices from the same brand, compared with the report average of 36%.

Study Rankings

Nest ranks highest in overall customer satisfaction (869), performing particularly well in five of the 10 factors: internet connectivity; variety of features; ease of use; reliability; and energy efficiency. Emerson (White Rodgers) ranks second (866) and Ecobee and Honeywell tie for third (862).

Overall satisfaction among smart thermostat customers is 865, down from 877 in 2016.

The 2017 Smart Thermostat Satisfaction Report measures overall customer satisfaction with smart thermostat brands among those who purchased a smart thermostat system within the past 12 months. Satisfaction is examined across 10 factors (listed in order of importance): ease of use; ease of install/setup; reliability; energy efficiency; price paid; effectiveness of heating/cooling; internet connectivity; usefulness of app; variety of features; and customer service. Satisfaction is calculated on a 1,000-point scale.

The report is based on responses from 987 customers and was fielded from August to September 2017.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Auto Insurance Customers Slow to Adopt Digital Claims Reporting, JD Power Finds

2017-10-19

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COSTA MESA, Calif.: 23 Oct. 2017 — Despite a nationwide advertising blitz for mobile auto insurance apps and widespread use of digital channels to purchase insurance, U.S. auto insurance customers have been slow to adopt digital claims reporting, according to the JD Power 2017 U.S. Auto Claims Satisfaction Study.^SM The finding is significant in light of dramatically rising claims frequency and high losses, which are forcing insurers to control costs through increased reliance on technology.

“U.S. auto insurers have invested heavily in technology that will help them gain efficiencies in claims handling, but there are still certain areas of the claims process where the human touch is proving difficult to replace,” said David Pieffer, Property & Casualty Insurance Practice Lead at JD Power. “As insurers continue down this path, it will be critical that communication with their customers is not negatively affected.”

Following are key findings of the study:

• Few customers adopting digital first notice of loss (FNOL) offerings: Nearly one-fourth (22%) of auto insurance customers begin their interaction with an insurer online, but just 9% of customers opt to report a claim digitally via the web or a mobile app. Even among Gen Y[1] customers, who are most likely to report a claim digitally, only 12% are taking advantage of FNOL technology, a number that’s increased just 2 percentage points since 2016. Worse, overall satisfaction is 16 points lower (on a 1,000-point scale) among all customers who are using digital FNOL offerings than among those who report via phone.

• Digital appraisal and status updates showing promise: While adoption rates and satisfaction with digital FNOL offerings have been stubbornly low, digital status updates and digital appraisal offerings, which allow customers to upload damage photos via a mobile app, are being used by roughly 16% of auto insurance claimants. Overall satisfaction is 33 points higher among customers who receive digital status updates than among those who do not. Customer satisfaction with digital appraisal apps is mixed based on the age of the customer, with satisfaction improving by 26 points among Gen Y and declining by 16 points among Pre-Boomers when using appraisal apps.

• Claim servicing is top driver of satisfaction, but results vary widely by insurer: Claim servicing is the top driver of overall customer satisfaction, but it also has the largest range of performance when comparing the highest and lowest insurer scores. The top performer in the claims servicing factor has an overall customer satisfaction score that is 104 points higher than the lowest performer.

Insurer Rankings

Amica Mutual ranks highest in overall customer satisfaction with a score of 901. Auto-Owners Insurance ranks second with a score of 892 and Erie Insurance ranks third with a score of 881.

The 2017 U.S. Auto Claims Satisfaction Study is based on responses from 11,857 auto insurance customers who settled a claim within the past six months prior to taking the survey. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. Survey data was collected from November 2016 through August 2017.

For more information about the U.S. Auto Claims Satisfaction Study, visit http://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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Business Wireless Satisfaction Noticeably Higher among Unlimited Plan Customers, JD Power Finds

2017-10-20

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COSTA MESA, Calif.: 26 Oct. 2017 — It’s not just consumers with their bandwidth-sucking kids and always-on-social-media habits who crave unlimited data plans from their wireless carriers. According to the JD Power 2017 U.S. Business Wireless Satisfaction Study,^SM released today, unlimited data services offer an even greater boost to customer satisfaction in the business wireless market.

“Just as consumer wireless customers dread getting those data overage notifications, business wireless customers prefer the predictable budgeting and unrestricted employee access that comes with unlimited data plans, even if those plans cost more,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at JD Power. “This is such a critical observation because it leads to a much larger adoption rate for unlimited plans and significantly higher levels of carrier loyalty among business customers.”

Following are some of the key findings of the study:

• Huge satisfaction gap grows between unlimited and data allowance plans: Overall satisfaction is much higher among customers whose company uses unlimited wireless data (822 on a 1,000-point scale), compared with those whose company does not (782). This 40-point gap is nearly double the 21-point gap observed in the consumer market when comparing those who have unlimited data with those who have data allowances.

• Unlimited plan adoption rate and loyalty significantly higher: The rate of adoption of unlimited data plans is 69% among business customers, compared with just 27% in the consumer marketplace. Among business customers who have unlimited data plans, 80% say they either “definitely will not” or “probably will not” switch to another carrier. That number falls to 73% among business users who have data allowances.

• Unlimited texting and international roaming also drive higher satisfaction: Other wireless services associated with higher levels of satisfaction include unlimited texting (+22 points) and international roaming (+35).

• Customer satisfaction correlates to size of business: Overall satisfaction with business wireless services is 813 in the large enterprise segment; 797 in the small/midsize business segment; and 761 in the very small business segment.

Study Rankings

T-Mobile ranks highest in all three business segments covered in the study, scoring 849 in the large enterprise segment; 813 in the small/midsize business segment; and 805 in the very small business segment. AT&T ranks second in the enterprise segment (820); Sprint ranks second in the small/midsize business segment (800); and Verizon Wireless ranks second in the very small business segment (770).

The 2017 U.S. Business Wireless Satisfaction Study is based on responses from 2,707 wireless customers. The study measures overall satisfaction among three key segments: very small business (1-19 employees); small/midsize (20-499 employees); and large enterprise (500 or more employees). Satisfaction is measured across six factors: performance and reliability; offerings and promotions; cost of service; sales representative and account executive; billing; and customer service.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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Small Business Banking Satisfaction Declines as Service Quality Suffers, JD Power Finds

2017-10-24

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COSTA MESA, Calif.: 26 Oct. 2017 — Many small businesses are feeling neglected by their banks as satisfaction in nearly every factor declines, according to the JD Power 2017 U.S. Small Business Banking Satisfaction Study,^SM released today.

“Small business banking is one of only two financial services industries measured by JD Power to show year-over-year declines in customer satisfaction in 2017,” said Bob Neuhaus, Financial Services Consultant at JD Power. “The performance gaps we’re seeing are pervasive, affecting virtually every customer touch point with the bank. Customers without an account manager and non-borrowers are especially vulnerable to competitive poaching and represent an important opportunity for banks to deepen relationships across multiple products.”

Following are some key findings of the study:

• Small business banking satisfaction declining: Overall small business bank customer satisfaction declines to 790 (on a 1,000-point scale) in 2017 from 797 in 2016, driven primarily by declines in account activities (-1.9 points); problem resolution (-1.5); fees (-1.5); and account manager (-0.8).

• Account managers play major role in relationship: Overall satisfaction is 135 points higher among small business customers who have been assigned an account manager and who say they feel they have a full partnership with that account manager (887) vs. those who do not have an account manager (752). However, customers who indicate having an account manager that does not fully understand their needs are even less satisfied (743) than those who have no account manager at all. Currently, just 52% of small business customers say they have been assigned an account manager.

• Small business lending is window to improving customer relationships: Small business customers who have borrowed money from their banking institution are significantly more satisfied than non-borrowers (822 vs. 757, respectively). The borrowing process is an important opportunity for small businesses to build a trust-based relationship with their banks.

• Customers with account managers more likely to promote bank: Net Promoter Scores,^® which measure the percentage of customers who are loyal enthusiasts who keep doing business with a company and urge their friends to do the same, are a significant 29 points higher among small business banking customers who have an account manager assigned than those who do not.

Bank Rankings

Chase ranks highest in small business banking satisfaction in the West region for a fifth consecutive year, with a score of 819. Chase is followed in the West region by U.S. Bank (797) and Bank of the West (788).

M&T ranks highest in small business banking satisfaction in the Northeast region with a score of 815. Capital One ranks second (813) and TD Bank ranks third (809). 

Citibank ranks highest in the Midwest region, with a score of 839, followed in a tie by Bank of America and Fifth Third Bank, each with 806.

TD Bank ranks highest in small business banking satisfaction in the South region, with a score of 819. It is followed by Capital One (817) and Chase (815).

The 2017 U.S. Small Business Banking Satisfaction Study includes responses from 8,378 small business owners or financial decision-makers who use business banking services. The study was fielded in June-August 2017.

For more information about the U.S. Small Business Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

Net Promoter® and NPS® are registered trademarks and Net Promoter System^SM and Net Promoter Score^SM are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

 

October New Vehicle Retail Sales Pace Remains Strong Amidst Recovery from Hurricanes

2017-10-26

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DETROIT: 26 Oct. 2017 — The new vehicle retail sales pace in October is expected to reach the second-highest level this year, according to a forecast developed jointly by JD Power and LMC Automotive.  The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 14.2 million units, down 0.3 million from a year ago. Retail sales in October are anticipated to reach 1,070,900 units, a 0.6% decrease (selling day adjusted) compared with October 2016.

“Recovery from Hurricanes Harvey and Irma continue to aid new-vehicle retail sales in October,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “Despite one fewer weekend than last year, sales in the Hurricane-affected regions continue to post gains in October. While on a national basis, October month-to-date sales are down 2.8% from last year, in the Southeast region, which includes Florida, sales are up 5% as shoppers complete purchases postponed during the storm and replace damaged vehicles. In contrast, sales in the South Central region, which includes Houston, are up only 3% as the recovery from the storm begins to wind down.”

Incentive spending in October remains aggressive as manufacturers clear out record inventories of prior model year vehicles. Average incentive spending per unit to date in October remains at $3,901, surpassing the previous high for an October of $3,835 in October 2016. New model year vehicles also continue to account for just 29% of sales so far in October, compared with 41% last year.

“While incentives have declined from the record high set last month, the need to reduce inventory could push spending to a new all-time high level in the final months of the year,” King said.

JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

	October 20171	September 2017	October 2016
New-Vehicle Retail Sales	1,070,891 units (-0.6% lower than October 2016)2	1,255,332 units	1,120,052 units
Total Vehicle Sales	1,320,374 units (+0.1% higher than October 2016) 2	1,522,913 units	1,371,347 units
Retail SAAR	14.2 million units	15.5 million units	14.5 million units
Total SAAR	17.6 million units	18.6 million units	17.8 million units

¹Figures cited for October 2017 are forecasted based on the first 17 selling days of the month.
²October 2017 has 25 selling days, while October 2016 had 26 selling days in the month.

• The average new-vehicle retail transaction price to date in October is $32,185, a record for the month, surpassing the previous high for the month of $31,570 set in October 2016.
• Consumers are on pace to spend $34.5 billion on new vehicles in October, down nearly $1 billion from last year’s level.
• Average incentive spending per unit to date in October is $3,901 per unit, surpassing the previous high for the month of $3,835 set in October 2016. Spending on trucks and SUVs is $3,842, up $73 from last year. Spending on cars is $4,015, up $69.
• Incentives as a percentage of MSRP are at 10.5% so far in October, exceeding the 10% level for 15th time in the past 16 months.
• Trucks account for 66% of new-vehicle retail sales through Oct. 22—the highest level ever for the month of October—making it the 16th consecutive month above 60%.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 75 through Oct. 22. This is the highest level since July 2009 (80 days).
• Fleet sales are expected to total 249,500 units in October, up 3.3% from October 2016 on a selling day adjusted basis. Fleet volume is expected to account for 19% of total light-vehicle sales, up from 18% in October 2016.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said, “The current pace of U.S. auto sales is driven, in part, by recovery from hurricanes Harvey and Irma, but it now appears to be less of an overall volume boost and for a shorter duration than previously expected. Next year remains a pivotal year for auto sales, driven by conflicting varables. Tailwinds include a likely fiscal stimulus package and perhaps some insurance-delayed hurricane recovery. Headwinds may be stronger though, including used car interplay and some credit tightening. The wild card will be incentives/pricing and consumer response.”

LMC’s outlook for 2017 total light-vehicle sales is holding at 17.1 million units, a decrease of 2.3% from 2016. The outlook for retail light-vehicle remains at 13.9 million, down 1.3% from 2016. Looking forward to 2018, total light-vehicle sales are forecasted at just under 17.0 million unit, with retail light-vehicles at 13.8 million units.

 

U.S. Retail SAAR— October 2016 to October 2017

(in millions of units)
Source: Power Information Network^® (PIN) from JD Power

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

About LMC Automotive www.lmc-auto.com.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

 

JD Power Promotes Jim Miller to Vice President of Banking and Credit Card Practice

2017-10-31

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 COSTA MESA, Calif.: 1 Nov. 2017 — Jim Miller, a well-recognized and trusted advisor to the financial services industry in customer experience and analytics, specifically with the top U.S. financial institutions, has been promoted to the new position of Vice President of Banking and Credit Card at JD Power, the global leader in consumer data & analytics and advisory services. 

Miller, who has been with JD Power since 2012, will lead the overall strategic direction of the company’s growing Banking and Credit Card segment, including syndicated research studies, new product development, thought leadership and customer experience advisory services. Miller will report directly to Keith Webster, Senior Vice President and General Manager, SI Americas.

“There is no more qualified person for this position than Jim Miller,” Webster said. “Given his industry experience and his time with JD Power, he is the ideal person to lead our efforts to support the North American Banking and Credit Card industry.”

“Banks and credit card issuers have reached record highs in satisfaction by developing and executing customer focused strategies,” Miller said. “JD Power helps bring the voice of the customer to the banking and credit card industries and I look forward to continuing our partnerships with leading financial institutions to help drive further improvements in the customer experience across the industry.”

Previously, Miller was the Senior Director of Banking Services and was responsible for syndicated and proprietary studies in the banking industry such as the Retail Banking Satisfaction Study and Credit Card Satisfaction study. Prior to working for JD Power, he served as president of Prime Performance, Inc. and senior vice president at SunTrust.  Miller holds an MBA from the University of Virginia Darden School of Business.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; JD Power; 714-621-6224; [email protected]  
Brian Shiver; XIO Group; 212-850-5683; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Rental Car Satisfaction Improves Amid Increased Price Pressure, JD Power Finds

2017-11-06

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COSTA MESA, Calif.: 8 Nov. 2017 — Airport rental car companies are experiencing an increase in overall satisfaction despite increased airport passenger congestion and ongoing logistical challenges caused by airport construction, according to the JD Power 2017 North America Rental Car Satisfaction Study,^SM released today. The primary driver of renters’ increasing satisfaction, however, is a sharp decrease in rental rates.

“Rental car satisfaction is improving, but it’s not really the type of satisfaction increase rental car companies want to see,” said Michael Taylor, Travel Practice Lead at JD Power. “Lower prices are having a positive effect on perceived value for renters, which is raising overall levels of satisfaction, but several other key quality measures—notably, wait times and problems with the pick-up and return processes—have not improved over the past four years. But cheaper daily rental rates overcome those negatives for most renters.”

Here some of the key findings from the study:

• Satisfaction up, prices down: Overall rental car satisfaction improves by 22 index points to 826 (on a 1,000-point scale) in 2017, driven primarily by increases in satisfaction in the cost & fees factor. The average reported daily rental car price has dropped $11 per day in 2017.

• Wait times and problems with pick-ups/returns increase: Wait times to pick up a rental car have increased two minutes, on average, since 2013. Of customers who experienced a problem, 20% reported a problem with the pick-up process and 17% reported a problem with the return process, a phenomenon that is largely attributable to increased passenger volume and construction at airports.

• Even in price war, features and benefits have big effect on satisfaction: Even though price perceptions have the greatest effect on overall satisfaction, renters who choose rental car brands based on price alone are the least satisfied (787), while customers who choose a rental car brand based on features and benefits are the most highly satisfied (889).

• Social media becomes problem resolution battleground: Fully 70% of renters who post online about their rental experience expect a response from the rental car company, far outpacing the expectations of hotel guests and airline passengers, both of whom come in at 45%. When a rental car company simply responds to a post, satisfaction increases 63 points on average. If the issue is resolved, the satisfaction score jumps 95 points.

Rental Car Company Rankings

Enterprise ranks highest in overall customer satisfaction for a fourth consecutive year, with a score of 851. Enterprise is followed by National (846), Alamo (828) and Hertz (822).

The 2017 North America Rental Car Satisfaction Study is based on responses gathered between September 2016 through August 2017 from 11,177 business and leisure travelers who rented a vehicle at an airport location from August 2016 through August 2017.

For more information about the North America Rental Car Satisfaction Study, visit http://www.jdpower.com/resource/north-america-rental-car-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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